LITTELFUSE INC /DE - FORM 8-K - EX-99 - EXHIBIT 99.1

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8-K - FORM 8-K - LITTELFUSE INC /DE	lfus20131028_8k.htm

Exhibit 99.1

NEWS RELEASE

CONTACT: Phil Franklin,

Vice President, Operations Support and CFO (773) 628-0810

LITTELFUSE REPORTS THIRD QUARTER RESULTS

CHICAGO, October 30, 2013 – Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the third quarter of 2013.

Third Quarter Highlights

●

Sales for the third quarter of 2013 increased 7% sequentially and 16% year over year to a record $201.0 million. This included $21.1 million of sales from the Hamlin acquisition.

●

On a GAAP basis, third quarter 2013 earnings were $1.19 per diluted share. This included a $1.5 million foreign exchange loss and $0.6 million of costs related to the Hamlin acquisition. These special items reduced earnings by approximately $0.07 per share.

●

GAAP operating margin for the third quarter of 2013 was 18.7%. This included the $0.6 million of Hamlin acquisition costs mentioned above as well as $1.4 million of amortization of intangibles related to Hamlin.

●

Sales and order trends by business unit were as follows for the third quarter:

Electronics sales (excluding acquisitions) increased 3% sequentially and 4% year over year. The book to bill for the third quarter was .95 compared to .89 for the prior year.

Automotive sales (excluding acquisitions) increased 11% year over year due primarily to strong growth in passenger vehicle fuses and Accel sensors.

Electrical sales declined 10% year over year due to a drop-off in custom products selling into the potash mining market. This was partially offset by strong performance of the power fuse business reflecting continued success in the solar, HVAC and lighting markets.

●

Cash provided by operating activities was $46.8 million for the third quarter of 2013 compared to $43.5 million for the third quarter of 2012. Capital expenditures for the third quarter of 2013 were $10.9 million compared to $6.0 million for the prior-year quarter. The increased capital spending is related to several capacity expansion projects which support the company’s growth plans and new product introductions.

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“We had an excellent third quarter as sales were just above the middle of guidance and margins were at the upper end of our expectations,” said Gordon Hunter, Chief Executive Officer. “The electronics business continues to deliver superior profit margins in a challenging market environment. Automotive is benefiting from recent acquisitions and strong performance in the passenger vehicle market. In the electrical business, continued growth in power fuses is helping to offset reduced sales of custom products into the mining market.”

“In a slow-growth global economy with trends in our key end markets that are at best mixed, we delivered double-digit sales growth and near-record margins and cash flow in the third quarter,” said Phil Franklin, Chief Financial Officer. “This is a good indication that our strategy is sound, our business model is working and our teams are executing well.”

Outlook

●

Sales for the fourth quarter of 2013 are expected to be in the range of $185 to $195 million which, at the midpoint, represents 20% growth compared to the fourth quarter of 2012.

●

Earnings for the fourth quarter of 2013 are expected to be in the range of $0.96 to $1.10 per diluted share.

Dividend

The company will pay a cash dividend of $0.22 per common share on December 5, 2013 to shareholders of record at the close of business on November 20, 2013.

Conference Call and Webcast Information

Littelfuse will host a conference call today, Wednesday, October 30, 2013, at 10:00 a.m. Central / 11:00 a.m. Eastern time to discuss the third quarter results. The call will be broadcast live over the Internet and can be accessed through the company’s website: www.littelfuse.com. Listeners should go to the website at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through December 31, 2013 on the company’s website.

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About Littelfuse

Founded in 1927, Littelfuse is the world leader in circuit protection with growing global platforms in power control and sensing. The company serves customers in the electronics, automotive and industrial markets with technologies including fuses, semiconductors, polymers, ceramics, relays and sensors. Littelfuse has over 7,000 employees in more than 35 locations throughout the Americas, Europe and Asia. For more information, please visit the Littelfuse website: littelfuse.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995.

The statements in this press release that are not historical facts are intended to constitute “forward-looking statements” entitled to the safe-harbor provisions of the PSLRA. These statements may involve risks and uncertainties, including, but not limited to, risks relating to product demand and market acceptance, economic conditions, the impact of competitive products and pricing, product quality problems or product recalls, capacity and supply difficulties or constraints, coal mining exposures reserves, failure of an indemnification for environmental liability, exchange rate fluctuations, commodity price fluctuations, the effect of the company’s accounting policies, labor disputes, restructuring costs in excess of expectations, pension plan asset returns less than assumed, integration of acquisitions and other risks which may be detailed in the company’s other Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This report should be read in conjunction with information provided in the financial statements appearing in the company’s Annual Report on Form 10-K for the year ended December 29, 2012. For a further discussion of the risk factors of the company, please see Item 1A. “Risk Factors” to the company’s Annual Report on Form 10-K for the year ended December 29, 2012.

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LITTELFUSE, INC.

Net Sales and Operating Income by Business Unit

(In thousands of USD, unaudited)

	Third Quarter						Year-to-Date
	2013		2012		% Change		2013		2012		% Change

Net Sales
Electronics ⁽²⁾	$	101,013	$	87,779		15%	$	271,878	$	254,342		7%
Automotive⁽³⁾		70,386		51,878		36%		194,319		155,954		25%
Electrical		29,641		33,031		(10%)		93,527		98,823		(5%)

Total net sales⁽¹⁾	$	201,040	$	172,688		16%	$	559,724	$	509,119		10%

(1) Total net sales for 2013 include $21.1M for the quarter and $28.1M for year-to-date from the Hamlin acquisition.

(2) Total Electronics net sales for 2013 include $10.1M for the quarter and $13.5M for year-to-date from the Hamlin acquisition.

(3) Total Automotive net sales for 2013 include $11.0M for the quarter and $14.6M for year-to-date from the Hamlin acquisition.

	Third Quarter								Year-to-Date
	2013			2012			% Change		2013			2012			% Change

Operating Income
Electronics	$	20,362		$	17,186			18%	$	52,284		$	43,075			21%
Automotive		11,135			7,018			59%		29,531			23,489			26%
Electrical		6,687			8,235			(19%)		18,801			23,795			(21%)
Other ⁽⁴⁾		(625	)		(1,508	)	n/a			(3,558	)		(1,508	)	n/a

Total operating income	$	37,559		$	30,931			21%	$	97,058		$	88,851			9%

Interest expense		939			454					1,959			1,298
Investment impairment ⁽⁵⁾		-			1,965					10,678			3,523
Foreign currency revaluation (income) expense		1,476			834					(1,929	)		1,903
Other (income) expense, net		(1,380	)		(1,350	)				(3,543	)		(3,075	)

Income before taxes	$	36,524		$	29,028			26%	$	89,893		$	85,202			6%

(4) "Other" typically includes special items such as acquisition-related costs, restructuring costs, asset impairments, and gains and losses on asset sales. For the third quarter of 2013, "other" included legal and investment banking fees and other costs related to the Hamlin acquisition ($337K all in G&A) and a purchase accounting adjustment (ASC 805) also related to the Hamlin acquisition ($345K all in Cost of sales).

(5) Impairment and loan losses from investment in Shocking Technologies.

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LITTELFUSE, INC.

Condensed Consolidated Balance Sheets

(In thousands of USD, except share amounts)

	September 28, 2013			December 29, 2012
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	292,936		$	235,404
Short-term investments		8,808			-
Accounts receivable, less allowances		129,122			100,559
Inventories		91,978			75,580
Deferred income taxes		11,157			11,890
Prepaid expenses and other current assets		17,771			16,532
Total net sales		5,500			5,500
Total current assets		557,272			445,465
Property, plant and equipment:
Land		4,080			6,243
Buildings		59,602			54,559
Equipment		358,324			304,954
		422,006			365,756
Accumulated depreciation		(275,906	)		(244,845	)
Net property, plant and equipment		146,100			120,911
Intangible assets, net of amortization:
Patents, licenses and software		42,461			11,144
Distribution network		32,174			18,964
Customer lists, trademarks and tradenames		22,452			18,704
Goodwill		186,667			133,592
		283,754			182,404
Investment in unconsolidated entity		-			8,666
Investments		11,136			10,327
Deferred income taxes		3,776			8,090
Other assets		4,893			1,865
Total assets	$	1,006,931		$	777,728

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	38,937		$	27,226
Accrued payroll		26,686			20,540
Accrued expenses		11,643			11,062
Accrued severance		345			1,033
Accrued income taxes		10,154			11,559
Current portion of long-term debt		133,500			84,000
Total current liabilities		221,265			155,420
Long-term debt, less current portion		95,000			-
Accrued post-retirement benefits		14,928			22,338
Other long-term liabilities		15,331			12,412
Total equity		660,407			587,558
Total liabilities and equity	$	1,006,931		$	777,728

Common shares issued and outstanding of 22,419,676 and 22,029,446 at September 28, 2013 and December 29, 2012, respectively.

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LITTELFUSE, INC.

Consolidated Statements of Comprehensive Income

(In thousands of USD, except per share data, unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012

Net sales	$	201,040		$	172,688		$	559,724		$	509,119

Cost of sales		120,080			104,052			340,601			310,059

Gross profit		80,960			68,636			219,123			199,060


Selling, general and administrative		34,437			30,601			98,091			90,199
Research and development expenses		6,217			5,505			17,725			15,553
Amortization of intangibles		2,747			1,599			6,249			4,457
		43,401			37,705			122,065			110,209

Operating income		37,559			30,931			97,058			88,851

Interest expense		939			454			1,959			1,298
Impairment and loan loss in unconsolidated affiliate		-			1,965			10,678			3,523
Foreign currency revaluation (income) expense		1,476			834			(1,929	)		1,903
Other (income) expense, net		(1,380	)		(1,350	)		(3,543	)		(3,075	)

Income before income taxes		36,524			29,028			89,893			85,202
Income taxes		9,534			6,250			21,461			21,898

Net income	$	26,990		$	22,778		$	68,432		$	63,304

Net income per share:
Basic	$	1.20		$	1.04		$	3.07		$	2.90
Diluted	$	1.19		$	1.03		$	3.04		$	2.87

Weighted average shares and equivalent shares outstanding:
Basic		22,428			21,923			22,274			21,770
Diluted		22,625			22,162			22,497			22,055

Diluted Net Income Per Share
Net income as reported	$	26,990		$	22,778		$	68,432		$	63,304
Less: income allocated to participating securities		(3	)		(28	)		(38	)		(123	)
Net income available to common shareholders	$	26,987		$	22,750		$	68,394		$	63,181

Weighted average shares adjusted for securities		22,625			22,162			22,497			22,055
Diluted net income per share	$	1.19		$	1.03		$	3.04		$	2.87
Comprehensive income	$	36,707		$	33,100		$	65,631		$	74,487

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LITTELFUSE, INC.

Consolidated Statements of Cash Flows

(In thousands of USD, unaudited)

	For the Nine Months Ended
	September 28, 2013			September 29, 2012

OPERATING ACTIVITIES:
Net income	$	68,432		$	63,304
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		19,603			19,029
Amortization of intangibles		6,249			4,457
Impairment of assets held for sale		-			549
Non-cash inventory charge⁽¹⁾		2,069			567
Stock-based compensation		7,030			5,574
Excess tax benefit on stock-based compensation		(3,763	)		(2,471	)
Loss on sale of assets		169			62
Impairment and equity in net loss of unconsolidated affiliate		10,678			3,523
Changes in operating assets and liabilities:
Accounts receivable		(16,348	)		(12,756	)
Inventories		(4,537	)		58
Accounts payable		6,659			5,640
Accrued expenses (including post retirement)		(11,743	)		(5,234	)
Accrued payroll and severance		5,492			(4,646	)
Accrued taxes		(5,473	)		(857	)
Prepaid expenses and other		1,294			(748	)
Net cash provided by operating activities		85,811			76,051

INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(25,328	)		(12,797	)
Acquisition of businesses, net of cash acquired		(145,000	)		(34,016	)
Purchase of investment		-			(10,000	)
Purchase of short-term investments		(8,478	)		(4,616	)
Proceeds from sales of short-term investments		-			17,805
Proceeds from sale of assets		158			495
Net cash used in investing activities		(178,648	)		(43,129	)

FINANCING ACTIVITIES:
Proceeds from term loan		100,000			20,251
Proceeds of revolving credit facility		160,500			-
Payments of revolving credit facility		(116,000	)		(17,500	)
Debt issuance costs		(809	)		-
Cash dividends paid		(13,789	)		(12,181	)
Proceeds from exercise of stock options		19,335			13,411
Excess tax benefit on stock-based compensation		3,763			2,471
Net cash provided by financing activities		153,000			6,452

Effect of exchange rate changes on cash and cash equivalents		(2,631	)		4,008

Increase in cash and cash equivalents		57,532			43,382
Cash and cash equivalents at beginning of period		235,404			164,016
Cash and cash equivalents at end of period	$	292,936		$	207,398

(1) Purchase accounting adjustment related to acquisitions.

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LITTELFUSE INC /DE - FORM 8-K - EX-99 - EXHIBIT 99.1 - October 30, 2013

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LITTELFUSE INC /DE Reports